Debt and Claims Trading
Kraig M. Kohring
Stephen A. Rutenberg
Bankruptcy and Financial Restructuring
Financial Technology (FinTech) and Regulation
Loan Enforcement and Creditors' Rights
Privacy and Data Security
Real Estate Finance
The Debt and Claims Trading lawyers at Polsinelli combine a deep knowledge of the secondary trading market with an appreciation of our clients’ business needs. We work with both buy-side and sell-side clients, including CLOs, hedge funds, broker dealers and investment banks, to help them meet their objectives in a timely and cost-effective manner.
Core Loan and Claims Trading Practice:
Our team of lawyers and dedicated legal assistants has significant experience with Loan Syndications and Trading Association (LSTA) documents and Loan Market Association (LMA), as well as trade claims, bilateral loans, and other types of illiquid assets. We work with our clients in all aspects of secondary market trading, including:
LSTA Par and Distressed Loan Trades:
We have deep experience advising, negotiating and drafting all aspects of LSTA trades. We will support all of your legal business and operational needs, from simple questions about pricing to complex loan transfers. Our team also assists with reviewing credit documents, establishing mechanisms for portfolio transfers, and performing pre-trade analysis and negotiation of documentation.
LMA Loans and Claims:
We are conversant in trades and loans and claims transacted under the London-based LMA protocols and documentation, and can assist with any legal need or operational question related to LMA trades in any jurisdiction where LMA documents are commonly used (including Europe, the Middle East and Africa).
Bankruptcy Trade Claims:
The sale of purchase of bankruptcy trade claims generally involves a greater level of risk, diligence and bespoke documentation as compared to loan purchases. We have a broad understanding in all elements of trading claims and regularly manage auction processes, review and revise underlying proofs of claims, draft transfer documentation and negotiate the terms of the claim for payment.
Post-Reorganization Equity Trading:
The transfer of new equities and warrants issued by companies after reorganization can present a number of complex documentation and securities law issues. We help buyers, sellers or issuers of such equity in all aspects of the transfer process.
We are at the forefront of innovative trends in the credit and broader financial markets and are prepared to assist our clients in utilizing new technologies while remaining compliant with securities laws and other rules and regulations.
Ancillary Services to Debt and Claims Trading:
In offices throughout the United States and partnering with a strong network of law firms around the world, we provide sweeping, seamless coverage of the myriad of corporate and litigation needs that stem from loan and claims trading transactions. In particular:
Loan Enforcement and Creditors Rights:
With one of the largest creditor’s rights practices in the United States, Polsinelli’s loan enforcement group has handled distressed loans in and out of courts in over 40 states. Our range and depth of experience in these jurisdictions allows us to counsel our clients about differences in enforcement procedures from state to state. With an eye towards the business objectives of our clients, we focus on speed, efficiency, clarity about the enforcement process, and maximization of client recovery.
Regulatory, Compliance and
Privacy and Data Security:
Although loans and trade claims are not considered securities, there are often regulatory and compliance issues that impact loan and claims transactions. We regularly advise our clients on matters such as the cybersecurity requirements relating to non-public information, compliance manuals, international privacy requirements applicable to customer data, and, in the case of certain equity trades, by issuing legal opinions.
Bankruptcy and Financial Restructuring:
Our financing restructuring and
practices have a national footprint, including a Delaware office. We represent all stakeholders in restructuring and insolvency processes and provide client-oriented, cost effective representation in any restructuring matter.
Real Estate Finance:
Polsinelli’s nationally recognized real estate team advises on all aspects of real estate finance, including
, from loan origination to restructuring.
Polsinelli’ s private funds practice provides cost-effective solutions in the alternative asset management space. We assist clients with the formation and operation of hedge and hybrid funds for liquid and illiquid securities and assets (such as loan and claim trades) and private equity funds for distressed, credit, special situations, mezzanine, growth capital, buyout, and real estate assets.
Loan and claims trading transactions often involve tax considerations that can turn a profitable trade into an unprofitable one. With our knowledge of both the economics of debt trading and the relevant tax codes, we work to make sure that our clients have the knowledge they need to make the most tax effective trades.
Our capital markets and derivatives practices works with our trading clients to help them meet their business objectives through the use of a variety of financing and derivative products, including total return swap financing, vendor protection programs and other methods of obtaining leverage or credit protection.
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